AI Transformation

Gamification Strategy: What is it and How It Can Improve Your Business

In an era of surging market competition and heightened fight for customer attention and top talent, gamification offers a proven psychological framework to transform user engagement and enterprise performance.
Gamification Strategy in Business
Applying game mechanics to increase user engagement, brand loyalty, and internal motivation.

I recently read a book by Jane McGonigal called “Reality is Broken: Why Games Make Us Better and How They Can Change the World,” which, as you might’ve guessed, talks all about using games to improve our personal lives, businesses, and organizations.

So, it got me inspired to explore the topic a little further and share my thoughts.

With record numbers of new business applications filed every year, competition will continue to grow and it will become increasingly difficult to engage customers and retain them. The competition for top talent will also grow.

For these reasons, among many others, gamification is a powerful path to explore.

Game and software developers understand the psychology behind designing games to keep users engaged and constantly coming back for more. That's something many of our businesses can benefit from, both externally and internally.

Here are a few strategies to explore and some examples of companies that are doing gamification really well.

First up is, Rewards.

Rewards in Gamification Strategy
Loyalty rewards programs that incentivize continuous transactions and customer retention.

These are probably the most popular gamification strategy and the easiest to implement.

One popular example of a gamification strategy many of us probably unconsciously take part in every day is loyalty rewards programs at our favorite businesses.

Like Starbucks, for example. Buy more drinks, get more points, and eventually get a free drink. Yet on our quest to get the one free drink, we pay for 20!

Secondly, Badges.

Badges and Achievements for Internal Teams
Visual achievement badges and leaderboards boosting enterprise training completion rates.

They show off achievements and can serve as a great internal gamification strategy.

Deloitte has a great example.

They added gamification to their training with status symbols, reward badges, and leadership boards created to encourage executives to take a leadership training program, and add a little competition.

It turned out to be a massive success: Deloitte saw a 50 percent decrease in time to complete the program.

Last but not least, Points.

Points and Streaks in Gamification
Point milestones and daily streaks driving habit formation and continuous product usage.

With this, customers or users get points as they complete tasks. For example, achieve a certain amount of points, and buy things in the app, or possibly exchange points for discounts.

Duolingo, the language learning app, has mastered the points gamification strategy and amassed over 100 million users. With points, users can continue learning and advancing to new levels for free. You can also get bonus points for a learning streak and use them to purchase items in the app.

So my final take on gamification is this:

Balanced Gamification Execution
Keeping gamification succinct, purpose-driven, and aligned with core business value.

There’s no denying the power of games and the gratification associated with them. Most of us have experienced it before ourselves, perhaps many times (Candy Crushers, raise your hand!).

With this in mind, there’s really nothing to lose but much to gain by testing out a gamification strategy in your business.

However, it is important to be mindful that a gamification strategy for business is just a strategy, not a blueprint for your entire business model.

Too much gamification might make your employees and customers feel patronized, so it’s important to keep your strategy succinct, direct, and simple.

Has your business embraced the gamification strategy? Connect with us to explore interactive user experience design and software engineering solutions tailored to your company.

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